The entertainment company’s shares are down about 8% today after it began to warn Dish’s satellite customers that its carriage agreement expires tomorrow, but it “has not engaged in a serious way to reach an agreement for Viacom’s number one family of cable networks, including Nickelodeon, Comedy Central, VH1, MTV, BET, Spike, TV Land and CMT.”

Viacom calls this “par for the course for Dish” — adding that the programmer has “made every effort to negotiate a renewal…including granting multiple extensions.”

Although Viacom says it offered Dish financial terms “as good as larger distributors,” the No. 2 satellite company “made demands that are designed to be impossible to meet in order to take our negotiations public and likely force our programming off the air.”

Viacom adds on a web page about the dispute that its channels are “a great value for Dish.” It also says that Dish is “the most competitively disadvantaged distributor in the country” with many customers who are “fleeing” to competitors.

Dish says it regrets that Viacom “has chosen to involve customers in a business negotiation when time remains to reach an agreement.”

Dauman’s company “unilaterally elected to terminate an indefinite contract extension” tomorrow. Dish adds that Viacom “is asking hundreds of millions of dollars in increases, despite the changing landscape that includes drastically reduced viewership of Viacom channels and wide availability of their content across multiple platforms, frustrating consumers who don’t want to pay twice for the same content. Dish will continue to negotiate in good faith to reach an agreement that works for both sides.”

Viacom has a lot at stake in the talks with Dish. The loss of its 13.9 million subscribers would sting.

It also would fuel the belief that Viacom’s channels, which have lost viewers over the last two years, are not worth the price it has been charging. Some small cable companies including Suddenlink and Cable One said that their bottom lines improved after dropping Viacom.

Viacom is seen as especially vulnerable among network providers. Only three of the 25 it offers — Nickelodeon, Nick At Nite, and TV Land — are among the top 20 in daily audience, Guggenheim Securities’ Michael Morris notes. If distributors only carried Viacom channels that rank among the top 40, then it could lose $173 million a year in revenue.

But if Viacom agrees to charge a low rate to win Dish’s business, then it might have to do the same with other large distributors. Some have so-called Most Favored Nations deals guaranteeing that they pay the lowest price.

Cowen & Co’s Doug Creutz says that both sides have an incentive to make a deal, and it’s common to hear threats and tough talk in contract negotiations. Besides, Viacom shares have lost so much value — they’re down nearly 48% over the last 12 months — that they probably wouldn’t fall much more if it settled for less than it wanted.

If Viacom and Dish can’t make a deal, though, then the stock could take a hit. It would “create a much higher probability of future negotiations ending badly for the company,” the analyst says. “We think the likelihood of this happening is small, but not zero.”

Dish CEO Charlie Ergen has spoken warmly about Viacom — one of Dish’s early supporters. But he also told investors in February that he was prepared to dig in his heels.

At a time when pay TV network ratings are declining, “programmers come in for a renewal and say they want a double digit rate increase, and we say you should get a double digit decline,” he said. The balance of power in negotiations “has shifted to the distribution people having more leverage than they had in the past.”

141 Comments

Rytina • on Apr 19, 2016 9:56 am

Once Stewart and Colbert left Comedy Central, my viewing of any of the Viacom networks ceased. I enjoy my $20 a month dish network and could not care less is Nev and his Catfishing isn’t available on my television. Adios Viacom!

Jerry • on Apr 19, 2016 10:18 am

Not a surprise. I’ve been saying all along that Dish would become the biggest cable/satellite provider to drop the Viacom channels. Charlie has shown in the past he has no qualms over dropping high priced, low value channels which the Viacom channels are a perfect example of. No one is going to complain to Dish if they can’t watch 16 and Pregnant or The Soul Man.

• on Apr 19, 2016 4:46 pm

Will you may not complain about not being able to see soul man but I sure will.

Janet • on Apr 20, 2016 9:26 am

We can switch without penalty right? I signed up for these channels and they won’t have them, so they are breaking the contract.

Leah • on Apr 20, 2016 6:30 pm

This what we choose too and they are the ones breaking the contract big time and this rude and ignorant that they are doing this

James McCanless • on Apr 21, 2016 3:02 am

Actually, if you are still under contract, there will be a penalty for disconnection. In the contact it states that the programming can change with or without warning. So therefore, it is not a breach of contract by Dish Network.

BOB • on Apr 19, 2016 10:30 am

I say bye bye DISH and hello DIRECT TV. DIRECT TV is much better now with the AT&T merger. Adios DISH.

Roo • on Apr 19, 2016 11:18 am

And pay over $120 vs $50 in 2 years with the current offers for new customers.

Bob from direct tv • on Apr 19, 2016 12:22 pm

Says Direct tv sales rep

jay • on Apr 19, 2016 2:46 pm

why would I ever switch to over priced Direct Tv and get screwed out of more money. Dish has always fought for the consumer and kept my bill pretty much the same over the last 10yrs

• on Apr 19, 2016 8:47 pm

I agree 100%. Dish isn’t perfect but they fought for their customers. I wish the customers could see that.

• on Apr 19, 2016 8:52 pm

That’s bc we value our customers! I’ve worked for dish for 10 years and have seen many negotiations….changing providers is not the answer!

SMDRN66 • on Apr 20, 2016 6:38 am

I used to have DirecTV years ago. The service was bad. We would get signal interference often. And my bill kept getting bigger. Then in the mid to late 90s, DirecTV didn’t fight for its customers when the 4 majors stations, ABC, NBC, CBS, and Fox, decided to have their channels removed because people shouldn’t have to pay for their free channels. We live in a rural area which is why I had to get a satellite dish in the first place and couldn’t get a decent signal with an antenna. DirecTV always would cave and charge its customers more money. When the time came to move my system to the new house (across the driveway), I couldn’t get them to send someone out to transfer our equipment. I switched to Dish Network in 2001 and they have been a much better provider.

Even if it involves channels that I watch, I would rather Dish fight exorbitant increases because I can always watch something else. Or read a book.

• on Apr 20, 2016 8:07 am

Agreed I already have uverse the switch will be easy for me. Bye bye Dish nice knowing you

• on Apr 20, 2016 6:35 pm

We actually switched back to cable because it was a hell of a lot cheaper then dish or directv.

Sumner Redstone • on Apr 19, 2016 11:19 am

Lord, when will this long cable charade finally be over? You all suck and you know it.

• on Apr 19, 2016 11:49 am

*Singing* It’s so hard to say goodbye to yesterday.

Goodbye Dish & Hello Directv

Me • on Apr 19, 2016 12:43 pm

Viacom Dios!

• on Apr 19, 2016 1:36 pm

Whether Viacom or Dish wins, you can be sure the consumer will lose in the form of higher subscriber fees

• on Apr 19, 2016 3:26 pm

I think you cannot take off Nickelodeon and tvland and other

• on Apr 19, 2016 1:43 pm

TV Land is the only thing that Viacom has worth watching. But, I can live without it. I can get Gunsmoke and The King of Queens elsewhere. Please leave! But, adjust my bill accordingly.

Sally Hamilton • on Apr 19, 2016 2:10 pm

I have been with Dish for a lot of years, even though Direct TV keeps asking me to go with them, the channels that will be effected are mostly the ones we watch. please get this settled.

• on Apr 19, 2016 8:46 pm

Directv will have a contract negotiation with Viacom, and they will raise their bill more than dish, just like Directv does every year. Dish isn’t perfect but it’s 10 times better than Directv

• on Apr 20, 2016 4:51 pm

We left DirectTV because of a similar dispute with Viacom. They will all have negotiations/disputes.

Jimmy • on Apr 19, 2016 2:17 pm

Will anyone care?

• on Apr 20, 2016 7:39 am

Yes

• on Apr 19, 2016 2:50 pm

Shit I’ll be calling dish to get credit on my bill. I agree with them, but time to cash in as a costumer

• on Apr 19, 2016 3:03 pm

I don’t watch any of the channels that may go away, so problem here!

• on Apr 19, 2016 3:14 pm

Well I’ll be saying bye to Dish after 15 years. Getting tired of them always in contract disputes and losing channels. I would be paying high prices for these channels if I didn’t want them. Dish charges high prices anyways if they weren’t in disputes.

Carolynsnuggs@gmail.com • on Apr 19, 2016 3:22 pm

No one including Viacom or Dishnet thinks about the customer. This is getting old. Maybe we should investigate other avenues for viewing and leave both out. I am primarily interested in TV Land for Andy Griffin. Finding something to watch that is not trashy is hard.

kids and mom • on Apr 19, 2016 3:44 pm

Hey,You guys say your gonna remove nick and other one’s well that’s the only channel my kids watch and there are very upset when they saw this on tv and if this happen’s I will cancel dish.

• on Apr 20, 2016 9:56 am

Spongebob will rot your kids’ brains.

Brian • on Apr 20, 2016 3:42 pm

Tell them to go play outside

Leah • on Apr 20, 2016 6:27 pm

If they stop a lot of the shows me and my husband will quite dish 2 it’s redicuios that they take all the channels and shows people like and people needs to complain that they are taking the channel from us

• on Apr 19, 2016 4:01 pm

I am a dish customer and i love watching the spike channel. I think it is really ridiculous to drop channels that people like to watch. I love my dish and i would never go back to direct tv.

• on Apr 19, 2016 4:10 pm

Guess it’s about time I ho back to direct huh you guys are always getting rid of programs. I am a dish customer come on get it together.

• on Apr 19, 2016 4:07 pm

Tonya,

I am a dish customer i love the spike channel because alot of my favorite shows are on this channel. I think that getting rid of those other channels are ridiculous so please don’t blackout those other channels. I would never go back to direct tv

Alesha N Matt Gibson • on Apr 19, 2016 7:41 pm

We have had dish network for along time to and they have been pretty reasonable. I would hate to say that if the channels there talking about blacking out happens we probably won’t go to direct tv because they really aren’t satisfying. So has for dish I don’t know what I would do without the history channel, spike channel, and I hope the dicovery channel isn’t part of it but probably is. Those are my favorite channels and if there not on dish network tv then I am not with dish. My girlfriend says the samething when it comes to cmt and some of the channels that I minchend and liked. So there it is them channels gone then we are to. I really hope you all can work something out. I would really miss dish network.

• on Apr 19, 2016 4:07 pm

Removing channels from dish is definetly cheating your customers as in your bulletin you just raised on monthly bills. Well be prepared to lose customers. I would consider this option.

• on Apr 19, 2016 4:32 pm

I live in a Camper with a 10 year old, Nick is essential!

• on Apr 19, 2016 5:05 pm

I have been a Dish customer for some time. They have great customer service. Rarely do I lose signal. But I don’t want to lose these channels. My father is disabled, unable to walk or get around on his own. His t.v. stays on tv land and usa. Please do not drop Viacom. Please do not drop USA channel either. I would hate to have to leave Dish for Direct Tv.

Jason San Fillipo • on Apr 19, 2016 5:41 pm

When this happens,i will demand dish lower my bill for losing all thoes channels. Also I’m glad I have hulu that way I won’t miss anything. Directv is the worst idea , do some research before you make a mistake. Just get hulu .

Joe Blackburn • on Apr 19, 2016 5:43 pm

I’m very unhappy with the programming with Dish Network. Now they may be dropping more favorite channels. I went with Dish Network one month ago, a big mistake. I should have done my homework and stayed with Cable TV.

• on Apr 19, 2016 6:10 pm

I’m a current Dish customer. Good bye Viacom.
I think I can survive without your channels.

• on Apr 19, 2016 6:12 pm

It stinks that they are going to take 18 or more channels away. I have 250 + and if they take channels away, I still have to pay the same bill price and have fewer channels. Besides they are taking away most the channels we watch. Viacom is forcing dish to rip us off. I’m sick of this and sick of these companies ripping us off with dish.

KrysK • on Apr 19, 2016 6:26 pm

Viacom sales and stock drops and THEY think its Dish? I dont think so – if they are smart – they need to renew and leave it alone. This is all so ridiculous. They already were dropped by Suddenlink and maybe Comcast – so if Viacom wants to save face – id say close the deal, suck it up and give consumers what they want.

• on Apr 20, 2016 2:21 pm

I have dish network and also some of my family we are not happy with this situation every time u turn around dish is wanting to blackout channels do what’s right for the customers leave our channels on it’s bad enough to have to pay these high prices to even watch tv take some of the shop at home stations off it’s like destination America u have to pay extra for it when it should be an included channel at no extra price and there’s other stations the same way so leave our stations on do what’s right for the paying customers I have been a dish customer for many years and I also know by experience that direct tv does raise their bill higher and higher each month u get a Bill.anonymouse